Cash Flow Statement (3 months) | | JUNE (K) | JULY (K) | AUGUST (K) | | ------------------ | -------- | -------- | ---------- | | Cash at start | 200,000 | 265,000 | 330,000 | | Sales income | 150,000 | 150,000 | 150,000 | | Others | | | | | Total Income | 350,000 | i | ii | | Stock Purchase | 50,000 | 50,000 | 50,000 | | Wages | 10,000 | 20,000 | 20,000 | | Electricity | 5,000 | 5,000 | 5,000 | | Utilities | 5,000 | 8,000 | 8,000 | | Rental | 10,000 | 10,000 | 10,000 | | Transport | 5,000 | 5,000 | 5,000 | | Total Expenses | 85,000 | 85,000 | 85,000 | | Cash at end | 265,000 | 330,000 | iii | QUESTION 16 Calculate the following; i. ii. iii. QUESTION 17 What is the total income calculated? QUESTION 18 How is cash at end calculated?

To solve the questions given, we need to understand the components involved in a Cash Flow Statement.
A Cash Flow Statement provides an overview of all the cash inflows and outflows a business experiences over a specific period.
Question 16: Calculate i, ii, and iii.

i (Total Income for July):
The formula for Total Income is:
Total Income = Cash at start + Sales income
Given:

Cash at start for July = 265 , 000
Sales income for July = 150 , 000

To solve for Total Income:
i = 265 , 000 + 150 , 000 = 415 , 000

ii (Total Income for August):
Again using the formula:
Given:

Cash at start for August = 330 , 000
Sales income for August = 150 , 000

To solve for Total Income:
ii = 330 , 000 + 150 , 000 = 480 , 000

iii (Cash at end of August):
The formula to calculate Cash at end is:
Cash at end = Total Income − Total Expenses
Given:

Total Income for August (calculated) = 480 , 000
Total Expenses for August = 85 , 000

To solve for Cash at end:
iii = 480 , 000 − 85 , 000 = 395 , 000


Question 17: What is the total income calculated?
Adding the Total Income for each month:

June: 350 , 000
July: 415 , 000
August: 480 , 000

Total income over the three months:
Total Income = 350 , 000 + 415 , 000 + 480 , 000 = 1 , 245 , 000
Question 18: How is cash at end calculated?
Cash at end is calculated using the formula:
Cash at end = Total Income − Total Expenses
Where Total Income is the sum of all cash inflows (such as sales income), and Total Expenses include all outflows like stock purchase, wages, electricity, utilities, rental, and transport.
This ensures that the business can track its liquidity and understand how much cash it has available at the end of each period.

Answered by LucasMatthewHarris | 2025-07-21